IFRS and U.S. GAAP
A) are diametrically opposed in their accounting for impairments of assets held for disposal.
B) are similar in the accounting for impairments of assets held for disposal.
C) are moving toward common ground in their accounting for impairments of assets held for disposal.
D) are moving further apart in their accounting for impairments of assets held for disposal.

Question

Quizplus · Accepted Answer

Both IFRS and U.S. GAAP are moving toward common ground in their accounting for impairments of assets held for disposal. Under IFRS, impairment losses on assets held for sale are recognized in profit or loss, while under U.S. GAAP, impairment losses are recognized only if the carrying value of the asset is not recoverable. However, both IFRS and U.S. GAAP are moving toward a model where impairment losses are recognized based on the fair value less cost to sell approach.